Owasso, OK asked in Foreclosure and Real Estate Law for Oklahoma

Q: We are selling a home with a contract for deed and have a question about floreclosure.

I understand that in Oklahoma we would have to file a lawsuit to foreclose. If a judgment is granted in our favor as sellers, does the property have to be sold at auction or does that give us the right to retake possession?

Related Topics:
1 Lawyer Answer
Richard Winblad
Richard Winblad
  • Edmond, OK
  • Licensed in Oklahoma

A: You are correct. A Contract for Deed is actually treated as a deed to the purchaser and a mortgage back to the seller. Because it gives the purchaser an interest in land the mortgage (contract for deed balance) would have to be foreclosed and sold at sheriff's sale. If it sells for more than what is owed the purchaser is entitled to that amount. If it sells for less than is owed you could be entitled to a deficiency judgment for the balance. You could bid on the property at the sheriff's sale along with any other interested party.

--A contract for deed is not for anybody who is unwilling to go through with the foreclosure process.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.